A "low interest" loan shouldn't mean you have very little interest in paying it back!
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Renovating or refurnishing your home can be a daunting task especially when you need funds to execute it. The HDFC Home Improvement Loan lets you upgrade your home for a more comfortable living. From new flooring to plastering and painting, home improvement loans from HDFC boast of several unique features with easy and stress-free documentation.
HDFC offers home improvement loans based on two types of interest rates – home loan interest rates and TruFixed Loan (2-year Fixed Rate). Below are the details for your reference:
1. For Salaried/Self-Employed Professionals
| Loan Slab | Home Loan Interest Rate (% p.a.) | TruFixed Loan Interest Rate (% p.a.) |
| For Woman (up to Rs.30 lakh) | 8.65 to 9.15 | 9.40 to 9.90 |
| For Others (up to Rs.30 lakh) | 8.70 to 9.20 | 9.45 to 9.95 |
| For Women (above Rs.30 lakh to Rs.75 lakh) | 8.90 to 9.40 | 9.55 to 10.05 |
| For Others (above Rs.30 lakh to Rs.75 lakh) | 8.95 to 9.45 | 9.60 to 10.10 |
| For Woman (above Rs.75 lakh) | 8.95 to 9.45 | 9.60 to 10.10 |
| For Others (above Rs.75 lakh) | 9 to 9.50 | 9.65 to 10.15 |
2. For Self-Employed Non-Professionals
| Loan Slab | Home Loan Interest Rate (% p.a.) | TruFixed Loan Interest Rate (% p.a.) |
| For Woman (up to Rs.30 lakh) | 8.80 to 9.30 | 9.55 to 10.05 |
| For Others (up to Rs.30 lakh) | 8.85 to 9.35 | 9.60 to 10.10 |
| For Women (above Rs.30 lakh and Rs.75 lakh) | 9.05 to 9.55 | 9.70 to 10.20 |
| For Others (above Rs.30 lakh and Rs.75 lakh) | 9.10 to 9.60 | 9.75 to 10.25 |
| For Woman (above Rs.75 lakh) | 9.10 to 9.60 | 9.75 to 10.25 |
| For Others (above Rs.75 lakh) | 9.15 to 9.65 | 9.80 to10.30 |
Below are the details of the maximum funding and loan payment terms offered under the HDFC Home Improvement Loan for both salaried and self-employed individuals:
| Loan Amount | Existing Customer | New Customer |
| Up to Rs.30 lakh | 100% of the estimate (subject to a loan not more than 90% of the market value of the property) | 90% of the estimate |
| Rs.30 lakh – Rs.75 lakh | 100% of the estimate (subject to a loan not more than 80% of the market value of the property) | 80% of the estimate |
| Above Rs.75 lakh | 100% of the estimate (subject to a loan not more than 75% of the market value of the property) | 75% of the estimate |
HDFC offers home improvement loans to both salaried and self-employed individuals between the ages of 18 – 65 who are resident Indians. You can also add a co-applicant to increase the loan amount and a women co-applicant can get you a better interest rate. Additionally, all co-applicants need not necessarily be a co-owner of the property to avail the loan.
Below is the list of documents required to avail an HDFC Home Improvement Loan along with the application form:
1. For Salaried:
| Identity and address proof (KYC) |
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| Income Proof |
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| Home/property improvement related documents |
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| Other related documents |
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2. For Self-Employed:
| Identity and address proof |
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| Income proof |
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| Property/Home Improvement related documents |
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| Other related documents |
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HDFC home improvement loan also comes with other charges and fees. Below are the details:
| Particulars | Charges |
| Processing fee | Salaried/self-employed professionals: Up to 0.50% of the loan amount or Rs.3,000 whichever is higher + applicable taxes Self-employed non-professionals: Up to 1.50% of the loan amount or Rs.4,500 whichever is higher + applicable taxes |
| Fees on account of external opinion | As the case may be |
| Property insurance | Premium amount to be paid directly to the insurance provider |
| Charges for delayed payments | Additional interest up to 24% p.a. |
| Statutory/Regulatory | All applicable charges as set by CERSAI |
| Prepayment charges |
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| Conversion fee |
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*Salaried
**Self-Employed
HDFC offers home improvement or renovation loans to NRIs, PIOs and OCIs. You can avail loan advisory services in the country you currently reside, and the loan is extended to both existing and new customers.
The interest rates and other charges for the HDFC NRI Home Improvement Loan are the same as that of a resident Indian.
The bank decides your loan eligibility primarily by your income and repayment capacity. Other parameters include your age, qualification, your spouse’s income, number of dependents, assets and liabilities, savings history, and the stability and continuity of occupation.
HDFC Bank offers both variable rate of interest as well as a fixed rate of interest for the HDFC Home Improvement Loan. You can also switch between the types of interest rates, subject to conversion fees.
It’s the difference in amount between the value of the property and the bank’s loan amount.
It refers to the estimated property value as per the prevailing market conditions.
The property being financed by HDFC will be the security to avail the loan or any other collateral or interim security as may be required by the bank.
Any claims or charges on the property caused by liabilities such as unpaid loans or bills is known as an encumbrance on a property.
You’ll have to insure the property for fire and other hazards during the tenure of the loan. You must produce the evidence of payment of the insurance as and when HDFC requests. Also, HDFC should be the beneficiary of the insurance policy.
The bank offers several modes of repayment of your loan:
You can prepay the loan availed from HDFC by making part or full payment; however, this process attracts prepayment charges.
Click on the “Apply Now” option on the website to submit your application online. Alternatively, you can download the application from HDFC’s website, or you could collect it from one the bank’s branch.
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